Do interest rates worry you?

[an]

You really don’t understand what is going on do you?? We are a net debtor nation who is dependant on influx of foreign credit to fund the deficit spending. Bernanke doesn’t really control the interest rates, at least not directly. He can only influence them. Ultimately, it is the market for debt that will control them in the long term and their appetite for risk and a weak currency policy that pays them back in weaker dollars.
I guess I need my eyes checked. I could have sworn that rates were higher last year and FFR were over 300 points higher. Man, I really don’t understand what it means when the fed lower FFR by over 300 points. I guess the discount rate they control have no meaning either, silly me.

If you think that the fed under the control of BB will raise rate in the face of recession/depression, then the last several months must have been a dream.

[JWM in SD]

“If you think that the fed under the control of BB will raise rate in the face of recession/depression, then the last several months must have been a dream.”

You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.

[JWM in SD]

“If you think that the fed under the control of BB will raise rate in the face of recession/depression, then the last several months must have been a dream.”

You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.

[JWM in SD]

“If you think that the fed under the control of BB will raise rate in the face of recession/depression, then the last several months must have been a dream.”

You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.

[JWM in SD]

“If you think that the fed under the control of BB will raise rate in the face of recession/depression, then the last several months must have been a dream.”

You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.

[JWM in SD]

“If you think that the fed under the control of BB will raise rate in the face of recession/depression, then the last several months must have been a dream.”

You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.

[an]

You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.
I never argue that the bond holder wants to get paid. They do and they also predict higher inflation, which will case rate increase. Inflation is the opposite of recession btw. Please tell me what the bond market expect in 2005 when FFR were around 5.5%? Don’t you remember the flatten yield curve? Don’t you remember every starting to say we just peaked and we’re heading for a recession? What did the Fed do when things start to really slow down? Show me your data that support your “theory” that rates goes up during a slow down and I’ll concede that I don’t know anything.

[an]

You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.
I never argue that the bond holder wants to get paid. They do and they also predict higher inflation, which will case rate increase. Inflation is the opposite of recession btw. Please tell me what the bond market expect in 2005 when FFR were around 5.5%? Don’t you remember the flatten yield curve? Don’t you remember every starting to say we just peaked and we’re heading for a recession? What did the Fed do when things start to really slow down? Show me your data that support your “theory” that rates goes up during a slow down and I’ll concede that I don’t know anything.

[an]

You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.
I never argue that the bond holder wants to get paid. They do and they also predict higher inflation, which will case rate increase. Inflation is the opposite of recession btw. Please tell me what the bond market expect in 2005 when FFR were around 5.5%? Don’t you remember the flatten yield curve? Don’t you remember every starting to say we just peaked and we’re heading for a recession? What did the Fed do when things start to really slow down? Show me your data that support your “theory” that rates goes up during a slow down and I’ll concede that I don’t know anything.

[an]

You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.
I never argue that the bond holder wants to get paid. They do and they also predict higher inflation, which will case rate increase. Inflation is the opposite of recession btw. Please tell me what the bond market expect in 2005 when FFR were around 5.5%? Don’t you remember the flatten yield curve? Don’t you remember every starting to say we just peaked and we’re heading for a recession? What did the Fed do when things start to really slow down? Show me your data that support your “theory” that rates goes up during a slow down and I’ll concede that I don’t know anything.

[an]

You just proved that you don’t know what you are talking about. If Bernanke doesn’t begin to raise rates sometime in the next year or so, then bond market will do it for him at the cost of the housing market and economy in general. Sorry, but bondholders and creditors like to get paid or they get really upset.
I never argue that the bond holder wants to get paid. They do and they also predict higher inflation, which will case rate increase. Inflation is the opposite of recession btw. Please tell me what the bond market expect in 2005 when FFR were around 5.5%? Don’t you remember the flatten yield curve? Don’t you remember every starting to say we just peaked and we’re heading for a recession? What did the Fed do when things start to really slow down? Show me your data that support your “theory” that rates goes up during a slow down and I’ll concede that I don’t know anything.

[JWM in SD]

“Inflation is the opposite of recession btw.”

No, inflation is an expansion of the monetary base or money supply. Higher interest rates reflect the need for risk and future payment in equivalent basline amounts. The two are mutually exclusive as far as I’m concerned. Recession just means that there is slowed economic growth or negative growth in real terms. If credit is harder to come by for businesses and there is price effects in commodities due to expansion of the currency, then why wouldn’t there be a recession??

[JWM in SD]

“Inflation is the opposite of recession btw.”

No, inflation is an expansion of the monetary base or money supply. Higher interest rates reflect the need for risk and future payment in equivalent basline amounts. The two are mutually exclusive as far as I’m concerned. Recession just means that there is slowed economic growth or negative growth in real terms. If credit is harder to come by for businesses and there is price effects in commodities due to expansion of the currency, then why wouldn’t there be a recession??

[JWM in SD]

“Inflation is the opposite of recession btw.”

No, inflation is an expansion of the monetary base or money supply. Higher interest rates reflect the need for risk and future payment in equivalent basline amounts. The two are mutually exclusive as far as I’m concerned. Recession just means that there is slowed economic growth or negative growth in real terms. If credit is harder to come by for businesses and there is price effects in commodities due to expansion of the currency, then why wouldn’t there be a recession??

[JWM in SD]

“Inflation is the opposite of recession btw.”

No, inflation is an expansion of the monetary base or money supply. Higher interest rates reflect the need for risk and future payment in equivalent basline amounts. The two are mutually exclusive as far as I’m concerned. Recession just means that there is slowed economic growth or negative growth in real terms. If credit is harder to come by for businesses and there is price effects in commodities due to expansion of the currency, then why wouldn’t there be a recession??

[Author]

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